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Even though most people here know the majority of the record-producing cycle, I'll review just to make sure that we're all on the same page:


Step 1: Artist X Produces a Demo.

Step 2: Executive Y at Record Company Z listens to the demo.

Step 3: Artist X is signed with Record Company Z.

Step 4: Record Company Z gives Artist X a sum of money and studio time/equipment to produce and record music. Record Companies often have their own engineers to record and edit music, also.

Step 5: Record Company Z has the record/CD/album/single, etc. pressed.

Step 6: Record Company Z either distributes the music (shipping to stores) or pays someone else to do so.

Step 7: Record Company Z takes all income from the sale of merchandise and pays its employees, the distribution company, the recording studio, the pressing mill and everyone else, except the artist.

Step 8: Record Company Z counts the number of units sold and pays the artist a fixed rate per album. This number is usually in the pennies.

Step 9: If successful, Record Company Z pressures Artist X to create another album. The cycle starts again from Step 2.


This dynamic is analogous to only one other business model I know at this time;


The Pimp - Ho Relationship:

The Record Company is the Pimp

The Artist is the Ho

The Stage/Studio is the Corner

The Audience is the Trick

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